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A wireless ISP (WISP) serving parts of Michigan and eastern Iowa has informed customers that due to their enthusiastic use of the Internet, the company was slapping a 5GB monthly usage limit on customers effective Feb. 1.
SpeedConnect, based in Saginaw, Mich., informed customers in a letter that those who exceed the company’s new usage limit face a penalty overlimit rate of $2.00 per gigabyte. An alternative 200GB “Platinum” monthly usage plan, including phone service, was also announced for $69.99 per month.
That’s a steep rate increase for customers accustomed to receiving around 3Mbps download x 384Kbps upload speeds for $39.95 per month.
Too much for our reader Greg, who says he has been a SpeedConnect customer for the last decade.
“Ouch,” Greg writes. “I’m changing ISPs over this.”
Company officials blame the usage limits on usage growth. The company’s letter states, “[growth] is forcing us to make substantial upgrades to our networks and to rethink the way we provide service to our customers.”
Now customers will rethink using SpeedConnect for their Internet access.
SpeedConnect's letter to customers.
SpeedConnect’s attempt to collect upgrade funds from their customers, which the company admits are increasingly turning to broadband for home entertainment and information, comes at the same time the company had no trouble dipping into the kitty to buyout CommSpeed of Arizona’s 2.5GHz spectrum holdings and customers based in Eastern Iowa.
Saginaw, Mich.
AT&T DSL is one alternative.
The same CEO that signed the letter telling customers to use less of their service or pay dramatically more was thrilled about “the exciting new chapter” its merger/acquisition would open.
“The completion of this acquisition is a significant event for our customers, communities, investors, and employees,” said John A. Ogren, President and Chief Executive Officer.
Saginaw residents are not well-served by AT&T, which has left major gaps in the economically-stressed region’s broadband coverage options. We had a hard time finding landlines in Saginaw and nearby townships pre-qualified for AT&T DSL to offer a price comparison. After much searching, we discovered AT&T heavily markets DSL Pro ($35/$19.95 new customer promo price for one year) which delivers 3Mbps/512kbps service, or Elite ($40/$24.95 new customer promo price for one year) which offers 6Mbps/768kbps service to those who -can- get the service.
AT&T’s Pro plan delivers comparable speeds at lower prices than SpeedConnect charges, all with no usage limits. Users seeking higher speeds can use them without fear of overlimit penalties or a $70 broadband bill using AT&T’s Elite DSL plan.
SkyWeb is the other.
Greg also notes he has another wireless option, as do many residents and business across central Michigan’s Tri City area, from SkyWeb, which delivers wireless access at speeds ranging from 3-10Mbps. The company does not limit usage and offers new customers a month of free service. A comparable package of services from SkyWeb at 3Mbps is priced $10 less than what SpeedConnect charges.
Wireless ISPs have unique problems trying to keep up with usage demands:
- Many are individually owned and operated and lack sufficient capital to invest in required upgrades to meet today’s Internet multimedia reality;
- Many WISPs serve rural areas where growth opportunities are often limited;
- A few very heavy users could create significant strains on a wireless network that is not infinitely expandable;
- The arrival of competition from telephone, cable, or even cell-phone wireless data plans can present a major threat to the business plans of some providers.
[flv width=”384″ height=”236″]http://www.phillipdampier.com/video/WNEM Saginaw Air Advantage Broadband Grant 9-2010.flv[/flv]
WNEM-TV covered Air Advantage, another regional WISP that won a broadband stimulus grant last fall to expand wireless access in mid-Michigan. (2 minutes)
I like the total contradiction in the last paragraph stating “SpeedConnect Platinum customers, in addition to unlimited data downloads,”
So the last paragraph they still saying unlimited while 2 paragraphs above they’re saying it costs $69.95/month for 200GB metered internet at $2 a Gig…
Perhaps they meant to say unlimited data downloads at $2 a Gig as long as they can keep your credit card on file..
Yet again, another example of why Wireless ISP’s are not the answer even in rural areas, and never will be. Cable Co’s and Telco have nothing to worry from them.
Scott, what, pray tell, is the answer in rural areas if wireless is the only infrastructure available? Telephone lines 30+ thousand feet from the central office don’t count. Of course, if you’re willing to shore up the copper in the ground to DSL grade standards, THEN shore up the copper leading up to the rural DSLAM to T1 grade standards, THEN you might have a decent wireline network to offer last-generation services on. Or not. Where rural telcos decide that the above is not a good idea, the only wireline infrastructure (BPL is a failure of epic proportions, sorry) in… Read more »
Speedconnect simply wants to raise the rates to get more money. They say they are doing this to reduce bandwidth to help out all customers, yet they tell me to switch to the higher limit plan and get phone service too. This would make my usage go up not down. I have suffered with slow 0.4 meg service for a year now and have stayed with them. They told me they would soon fix the problem. I was shocked when the letter I got in the mail was not a thank you for staying with us we fix the problem… Read more »
I dropped their service a month after switching to the $70/mo plan.
The speeds were RARELY over 1 Meg, even at low use times (Midnight – 5am).
It was a joke. VOIP service was unusable, as I sounded terrible to my customers.
I couldnt do business with the poor internet speeds.
Luckily there are 2 other providers that service my area with no caps.
SpeedConnect sucks. Change the name to SlowConnectionFailure
$70!!!!
For ten less than that, I am getting 30/5Mbps service. I realize WISPs have their place, especially as a provider of last resort, but the technology is going to drive them out of business as Internet traffic continues to grow. WiMAX may help in rural areas for awhile anyway.
Of course, AT&T is no help, especially as they struggle to free themselves from the pesky requirement of even delivering basic phone service in rural Michigan.
What are your other providers there, for the benefit of those in the thread who want to shop elsewhere.
I dont think you are in much danger of going over your 5GB limit. A typical song for example will take up about 3MB in mp3 format and there are 1000MB in 1GB. I have over 900 songs on my computer and that only equates to 3.1GB. So i wouldnt worry if i were you. Just dont download too many really big files.
The problem with this analogy is, as our other readers pointed out, few people only do one thing with their Internet connection. I don’t send out the 10,000 e-mails providers always say I can with my “5GB” allowance. I might send a few hundred, and download a few hundred songs, and watch a dozen Netflix shows, and download software updates, make phone calls on the computer, and do what most Americans increasingly do online — access higher bandwidth content. All of these things together will EASILY put you over 5GB of usage per month. Providers seem to want to be… Read more »
not using the internet for anything much but sending emails, some pics, and a little surfing, I thought that I would not use the 5 gigs either, for several months after this new limit, I was in fact averaging below the 5gigs each month (I checked my usage on their site for everyday that it would give me a reading), then lo and behold, one month I am suddenly more than 50 gigs OVER my usage (over $100 bucks extra). Oh, and by the way, that month I had no internet at all for the first 8 days of the… Read more »
@cheap cable internet And if all people wanted to use their Internet connection for was downloading music, that would be a fine argument. You know — as long as they didn’t want files in any better quality than 128kbps. Or, heaven forbid, lossless files. The simple reality of it is that with a couple of computers on a home network, the monthly update cycle for Windows and Java and Flash alone is going to eat away a big chunk of that 5GB limit. With caps always come the provider spun numbers about how you can download this many songs, or… Read more »
Two movies on Netflix would put you over the 5 GB limit. Add to that windows updates and virus updates and you would be paying an over usage charge.
If I was just downloading a 3 meg file, I could do that with a modem.
Should read into the Changes from SpeedConnect Lately
They are launching a 2 million dollar Wimax 4G LTE Network offering 7MBs for the same 69.95
The 39.95 plan will be moving to 5MBs
No change being planned according to their website. Still a 5gb cap.
Speedconnect was clearly dishonest in not honoring their commitment to never raise rates. Perhaps the lawyers figured out a legal way around their commitment by placing a cap on usage, and then claiming they had not raised their rates. But since when did lawyers define honesty and moral responsibility?
Speedconnect clearly did not honor their commitment and promise to customers. That is dishonesty — plain and simple.
If I was the CEO I would not be sleeping at night, but perhaps he believes lawyers define what is honest or not.